The finance ministry is believed to have approved around 16 per cent increase in the Plan spend — Gross Budgetary Support (GBS) — for the next financial year on social sector programmes like the Mahatma Gandhi National Rural Employment Guarantee Scheme and Bharat Nirman project.

The Plan expenditure for 2012-13 would be around Rs 5.12 lakh crore, up 16 per cent over the Rs 4.41 lakh crore for provided this financial year, a source privy to the development said.

The Planning Commission had sought an 18 per cent increase in Plan expenditure or GBS to raise the spending to Rs 5.21 lakh crore in 2012-13, but concerned over the rising fiscal deficit, the finance ministry agreed for a smaller increase, the source added.